Key Takeaways
- Hyperliquid gains market attention following its impressive growth as investors and traders seek opportunities.
- Hyperliquid’s unique technology, community-driven approach, and adoption could see its DEX trading grow.
- On-chain analytics for Hyperliquid are impressive within a short time, as crypto experts hint at a 2x increase for its native token.
Hyperliquid is creating a lot of buzz in the DeFi (Decentralized Finance) space currently with its innovative approach to trading, utilizing high-performance blockchain technology that combines both speed and transparency.
Hyperliquid has huge potential to offset centralized exchanges as a perpetual decentralized trading platform on the layer-1 network, highlighting more critically the potential that Hyperliquid possesses.
What Is Hyperliquid?
Hyperliquid is a decentralized exchange designed for traders on the Layer 1 blockchain. This platform has been designed to enable high-frequency training, as it addresses the need for efficiency, liquidity, and speed that has been lacking from many DEX platforms, as crypto experts believe Hyperliquid could be the missing piece in DEX trading for many.
With its ability to process transactions quickly, similar to Solana, the platform provides a seamless trading experience for perpetual futures contracts that has garnered significant attention in the DeFi space.
Why has Hyperliquid DEX on layer one gained so much hype over the last few weeks?
According to crypto experts and on-chain analysts, Hyperliquid can achieve the following;
- High-frequency trading (HFT) profits are limited if there are other general-purpose transactions occupying demand for block space and competing for gas (in contrast, Hyperliquid’s trading experience is gasless; gas is only induced for transactions that increase state bloat, i.e., spot listings or transferring to new wallets).
- The chain must allow for specific order prioritization, such as for cancels and post-only limit orders, which ensures market makers aren’t subjected to as much toxic flow.
Additionally, a tailor-made solution helps optimize specific functions, such as atomic liquidations, funding distributions, and verifying solvency.
Compared to similar technologies such as GMX, dYdX, and Hyperliquid, dYdX redefines perpetual DEX trading, creating a new breath of fresh air, especially away from the control of centralized exchanges.
Why Crypto Experts Say Hyperliquid Is Undervalued
Here are the key Hyperliquid reasons crypto experts believe it is undervalued;
Dominance In DEX Perpetual Trading
Source – Hyperliquid Dune Analytics
Hyperliquid has captured the perpetual market, recording over 60% growth with a cumulative volume of over $3 trillion, surpassing the likes of GMX and dYdX in terms of volume, leading the DeFi market.
Despite Hyperliquid boosting a market capitalization of $14.4 billion, their crypto project still has enormous room for growth as crypto experts speculate a potential rally of 2X or more, which could see its market cap a high of $30 billion or more and its value rising above the top 10 crypto project by market cap.
Technological Performance
Hyperliquid operates on Layer 1, making its technology unique. With over 200,000 transactions per second, its execution is nearly instant, with no latency when trading on a DEX platform, executing derivative traders with zero gas fees.
Hyperliquid has been built for higher-performance trading, enabling high-stakes traders to execute their trades seamlessly.
Community-driven and Bullish Market Sentiment
Hyperliquid has built its DEX model around a thriving ecosystem willing to push its project to many heights, as this has been seen from the crypto making a lot of buzz around the potential Hyperliquid and how it has contributed so much to the DeFi industry within a short time as it reminds many investors and traders Solana potential before FTX event.
This approach to building its project around the community is evident in the growth of its native token, HYPE, as the price has garnered numerous predictions of a possible $100 price rally.
Hyperliquid has garnered numerous comparisons in recent times, and many on-chain crypto experts believe the project has significant potential to contribute to the growth of DeFi and decentralized derivatives, thanks to its high revenue, unique technology on the L1 network, and a community-driven approach that boosts its adoption.
